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Showing posts with label reduce taxes. Show all posts
Showing posts with label reduce taxes. Show all posts

February 3, 2013

US Expatriate Entrepreneurs - States with No Income Tax

US Expatriates are not required by law to maintain a state of residency or pay state income taxes. However many expatriate entrepreneurs need to locate a corporation or other business entity for their  business, but do not want to have to pay state income taxes.  The following states have no income taxes and may be suitable to keep a US presence (and form a corporation or LLC located there for your business) but not subject yourself to state income taxes:

  1. Nevada
  2. Washington
  3. Texas (does have a franchise tax on corporations)
  4. Alaska
  5. Florida
  6. South Dakota
  7. Wyoming 
We can assist you in forming a Corporation or LLC in these states, advise you on the best US tax elections to make (Subchapter S corporation election, etc) and the best way to utilize these entities with your offshore business operations.  We have helped hundreds of US Citizens doing business abroad in the same manner with great success.

If you went abroad, or are going abroad, and you live in California, Virginia, New Mexico and several other states that make it very difficult to give up your tax domicile (they want to keep taxing you after you have left the state to live outside the US) you may want to consider switching your legal residency (either before or after you have left) to one of these states and transfer all other indices of residency to one of these income tax free states.  It can avoid big potential problems later with the State you lived in (if it has tough rules on abandoning your tax domicile).

If you have questions email us at ddnelson@gmail.com or visit our website at www.TaxMeLess.com .